USD/CNH: Upside pressure alleviated below 7.0350 – UOB
|FX Strategists at UOB Group expect the upside pressure in USD/CNH to lose momentum on a breach of 7.0350.
Key Quotes
24-hour view: “Not surprisingly, USD posted an ‘inside day‘ yesterday as it traded within Wednesday’s broad range. The underlying tone has weakened somewhat and from here; USD could drift lower to 7.0550. Resistance is at 7.1200.”
Next 1-3 weeks: “After surging to a high of 7.1652 last Thursday (19 Mar), USD has not been able to make much headway on the upside. The relatively sharp decline of -0.48% yesterday (24 Mar) has dented the upward momentum and the chance for USD to break the strong 7.1700 level has diminished. From here, unless USD moves and stays above 7.1200 within these 1 to 2 days, a break of 7.0350 (‘strong support’ level previously at 7.0180) would indicate that the recent upward pressure has dissipated.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.